ONGOING SHIFTs IN THE GRANT LANDSCAPE – 2024

The following is a brief commentary and response to Imagine Canada’s recent article, 8 (MORE) SHIFTS IN THE GRANTS LANDSCAPE THAT FUNDRAISERS NEED TO KNOW ABOUT.

Below I list the 8 shifts identified by Imagine Canada and my thoughts on how they might impact your grant fundraising in the coming year. These insights provide information that can help you focus your granting efforts and simply provide you with more information on what's happening in the world of grants. Take this in stride and keep these insights in the back of your mind as the year ploughs on ahead.

1. The disbursement quota increased from 3.5% to 5% on assets over $1 million.

Last year, the Government of Canada increased the disbursement quota (DQ) – the percentage that registered charities such as foundations are required to disburse each year – to 5%, the first increase in over a decade. This is good news as it frees up more funding for distribution on support of the social impact sector. ?But just because there is more money on the table, doesn’t mean that it’s going to be easier to come by. The granting landscape continues to be a competitive market, and knowing how to prepare a strong and focused application will make all the difference in your fundraising goals.

2. Funders are making lasting commitments to support equity-seeking communities.

There has been a strong shift to where funders want to place their dollars as they respond to our ever-changing world. Funders want to support organizations that are doing the real work to increase diversity and equity in their programs, their organizations, and in their communities. This means as an organization you need to be doing the real and authentic work to create change if you want to access any of these funds.

This is a positive shift on the funder side as they are best positioned to address the disproportionate distribution of funding that has occurred in our past leaving Black and Indigenous-led organizations drastically underfunded. ?

3. Non-charities can now receive funding from charities in the form of “qualifying disbursements”.

While this is a positive on paper, it remains to be seen how this will play out in practice. While charities can now disperse funds to non-charities, when it comes to government regulations, someone remains accountable for the funding. There are still rules and regulations that a charity needs to follow. I anticipate funders who take this shift in stride will do so by managing risk by providing funding in smaller amounts as they develop and implement new processes to support this change.

4. AI is changing the way we fundraise.

It’s too early to understand the impacts AI will have on grant making, but many concerns are popping up (to be reviewed at another time). What’s important to know for fundraisers and grant writers is to remain mission-centred. Do not let AI write your applications for you or interpret what your organization can do. You know your mission, your programs, and your team's best.

Instead, use AI as a helpful tool to help with those pesky character counts. For example, if you’ve written a response to a question but you’re over by 50 words, ask AI to help reduce your text.

I recommend only using AI as a tool to help refine rather than create. If you need help developing your idea consider collaborating with us with project development support. We will work with you to focus on your organization's needs and compile a project blueprint that directly aligns with what funders are looking for. Together we can create a strong project that funders find irresistible.

5. Social finance and impact investing are gaining popularity in the sector.

The landscape of investing is changing and there is an opportunity for the non-profit sector to change with it. Organizations that want to take this approach should be looking at it from a business perspective to help expand their mission and diversify their revenue streams. But a word of caution, this is not a new form of granting, it’s a new form of investing which requires repayment overtime.

6. Participatory grantmaking and trust-based philanthropy are changing the fabric of grantor-grantee relationships.

This is probably my favourite shift that Imagine Canada has highlighted and what I am most excited about when it comes to the grant landscape. We are moving in a direction where relationships will act as the keystone of giving. But as you all know, change takes time. The colonial and historical ways of giving are still prominent and it will take many years before this is the norm. Exercise the opportunity to talk to any funder whenever possible and think long term. Together we can expedite this shift, but it will always remain pertinent to submit focused and impactful applications. ?

7. Pandemic-era funding has largely dried up while organizations continue navigating COVID-19’s aftermath.

While pandemic emergency funding has ceased and recovery relief is at it’s final trickle, organizations need to reprioritize and refocus on revenue diversification. Relying solely on grants is not smart. Relying solely on fundraising events is not enough. Relying on individual donors is not the way to go. There is a full spectrum of fundraising practices your organization can adopt. Review which practices your organization does and does well, and then evaluate where you need better systems. At Step Up Consulting we can develop a customized grant system to improve the way you manage granting.

8. More than ever, data is power in your grantseeking strategy.

Funders have their own priorities and areas they want to make an impact and they need you to do it. The sooner you understand that you need eachother the easier it will be to align your organization’s impact with theirs. You can do this through relationship building, asking better questions, and first and foremost having a strong understanding of what YOUR impact is. Don’t fake alignment with a funder just to get their funding – no one wins (especially you).

In 2024 Step Up Consulting is launching a new subscription-based newsletter, Step Up Grant Insider!?This newsletter subscription will provide granting insights right to your inbox?twice per month.?It will contain valuable information about upcoming grant deadlines, grant writing skill tips and information about the granting landscape like this article. If you want to be the first to know when we launch drop your contact information in the form here.